Red Robin Gourmet Burgers
Securities and Exchange Commission
is formally investigating the use of chartered aircraft and travel and entertainment expenses by the company's former CEO.
The Greenwood Village, Colo., burger chain said it told the SEC of its internal investigation following its completion in August 2005. The SEC indicated in its order that there has been no determination made by the SEC as to whether the company has in any way violated the law. The company has cooperated with the SEC, and intends to continue to cooperate fully with the SEC in its formal investigation.
Red Robin also said it recently has been served with a purported class action lawsuit, Huggett vs. Red Robin International, in the California Superior Court, over an alleged failure to comply with California wage and hour regulations. The company believes it has meritorious defenses to these claims and intends to defend the case vigorously.